What About My Equity: The Impacts of Zoning on Farm Businesses

One of the first questions often asked by farmers and rural landowners in communities considering new zoning ordinances that could limit landowners’ ability to develop their land is “how will this affect my equity?” This is an important question as the land owned by farmers may constitute a significant portion of their personal or farm business assets. It is not uncommon for the sale of a farm to pay for their retirement. Farmland is also often used as collateral for financing farm businesses. For these reasons, new zoning ordinances that could decrease the value of farmland draws close attention. While the specific requirements of these “zoning” laws differ by town, county and state, they generally place significant restrictions on landowners’ ability to develop their property for non agricultural purposes.